Section 269ST: Measures to boost digital transactions
After insertion of section 269ST by the F.A. 2017 w.e.f. A.Y. 2018-19, it has become illegal for a person to receive Rs. 2 lakhs or more from a person in one day, in respect of single transaction or for one event or occasion.
This provision has been brought in the statute book to reduce the uses of cash in the economy and boost the initiative taken by the government for promoting digital transactions.
This provision is applicable to all assessee for all transactions except some exceptions provided by the section irrespective of whether cash transaction is for personal use or business purpose.
‘No person shall receive an amount of two lakh rupees or more—
(a) in aggregate from a person in a day; or
(b) in respect of a single transaction; or
(c) in respect of transactions relating to one event or occasion from a person, otherwise than by an account payee cheque or an account payee bank draft or use of electronic clearing system through a bank account:
Provided that the provisions of this section shall not apply to—
(i) any receipt by—
(b) any banking company, post office savings bank or co-operative bank;
(ii) transactions of the nature referred to in section 269SS;
(iii) such other persons or class of persons or receipts, which the Central Government may, by notification in the Official Gazette, specify.
Explanation.—For the purposes of this section,—
(a) “banking company” shall have the same meaning as assigned to it in clause (i) of the Explanation to section 269SS;
(b) “co-operative bank” shall have the same meaning as assigned to it in clause (ii) of the Explanation to section 269SS.’
-Author is a Chartered Accountant